Anyone just had a Post Office 7.05% bond mature

Happychappy

Hi, Last September I put 35k into a 12 month fixed rate 7.05% bond which matured on 10th September.

From early August I started to receive the usual blurb to reinvest with further bonds once this matured, I didnt intend to as the PO uses Bank Of Ireland and is outside the FSA scheme, I'm sure Ireland wont go bust, but would rather be safe, although I think the UK is not that safe under the present jock.

All the advertising blurb stated if you dont want to reinvest with the Post Office savings, no problems, the bond will mature and you will receive the funds.

When I set the bond up I linked in an HSBC account and expected the bond to mature and payment sent to the HSBC on the 11th September by CHAPS transfer.

Today I have finally received a letter from them giving me details of an "Easy savings account" which they have transferred the funds into ? this pays an earth shattering 00.10%. They also give details of how I can set up a paymeny into other accounts but a maximum of £15 per day by BACS with a five working day transfer. This would take till approximately 28th September or later before I managed to withdraw the funds plus if I wanted to close the easy savings account which I didnt ask for them to open I would have to write in.

I gave details ofthe linked account when setting up the bond and nowhere on any of the many forms asking to reinvest did they state you need to now write in and set up a withdrawal account or that the Post Office would set up the worlds worst savings account with them and pay 0.10%

I expected the £37k into my account by 11th and now will be lucky to get this sorry mess sorted before October. I rang the supposed customer services department and got the usual fob off "you will need to write in".

Has anyone else fallen foul of this sharp practise?

Baldur

Not really sharp practise, it's probably the norm for this type of account with most providers, in the absence of specific instructions from the account holder.

As soon as I receive advance notification of maturity options, I always specify my instructions regarding the maturing funds in writing, i.e. "I wish the full balance (capital and interest) from my maturing account transferred to my linked account, Sort Code: xxxxxx Account No: xxxxxxxxxx."

Sceptic001

Yes, I got all that bumph from the Post Office and opted to re-invest at 4% fixed for one year, which I considered a very fair offer. I do remember that it said quite clearly that the default option was to transfer the matured bond into their Easy Saver account and there was a booklet enclosed detailing its terms which I did not read as it did not apply to me. I must say all the Post Office literature has been very clear.

Regarding transfers out of matured fixed rate accounts, the industry standard seems to be a BACS (ie three working days) withdrawal. The best service I ever got was from Anglo Irish Bank, who deposited the full amount in my nominated account by CHAPS on the maturity date at no charge.

zogg

Happychappy wrote: »

I'm sure Ireland wont go bust, but would rather be safe, although I think the UK is not that safe under the present jock.

1. No need to be racist.:mad:
2. Ireland won't go bust ?

The U.K. will be much safer with Cameron ?????????????

Give me strength.

gt94sss2

Happychappy wrote: »

From early August I started to receive the usual blurb to reinvest with further bonds once this matured, I didnt intend to as the PO uses Bank Of Ireland and is outside the FSA scheme,

If you are concerned that the Post Office/Bank of Ireland products don't qualify for the UK Financial Services Compensation Scheme but instead would rely on the Irish version if the worst happens then the following may be of interest to you:

http://www.thisismoney.co.uk/savings-and-banking/article.html?in_article_id=487776&in_page_id=7&ct=5

http://www.dailymail.co.uk/money/article-1194444/And-big-UK-welcome--Post-Office.html

which indicate that the BoI is restructuring its UK operations and they will (eventually) be part of the UK FSCS.

Havings said that, if the worst was to happen, I can't see UK savers not getting 100% of their money back regardless of which financial compensation scheme they fall under - because of what has happened in the past and political pressure (as it is the 'Post Office' brand)

When I set the bond up I linked in an HSBC account and expected the bond to mature and payment sent to the HSBC on the 11th September by CHAPS transfer.

I can't comment on the other points as I assume that the Post Office will have written to you outlining your options and what you need to do on the maturity of your bound - however, no provider will transfer your money free by CHAPS at the end - they would use BACS..

Regards
Sunil

Happychappy

gt94sss2 wrote: »

If you are concerned that the Post Office/Bank of Ireland products don't qualify for the UK Financial Services Compensation Scheme but instead would rely on the Irish version if the worst happens then the following may be of interest to you:

http://www.thisismoney.co.uk/savings-and-banking/article.html?in_article_id=487776&in_page_id=7&ct=5

http://www.dailymail.co.uk/money/article-1194444/And-big-UK-welcome--Post-Office.html

which indicate that the BoI is restructuring its UK operations and they will (eventually) be part of the UK FSCS.

Havings said that, if the worst was to happen, I can't see UK savers not getting 100% of their money back regardless of which financial compensation scheme they fall under - because of what has happened in the past and political pressure (as it is the 'Post Office' brand)



I can't comment on the other points as I assume that the Post Office will have written to you outlining your options and what you need to do on the maturity of your bound - however, no provider will transfer your money free by CHAPS at the end - they would use BACS..

Regards
Sunil

Hi

That is my point, the Post Office sent four different mailings all to do with the bond maturing and all trying to sell new bonds, each of the advertising materials listed the options only if you wanted to reinvest, if you didnt, the only line was No Problem, we will send you details of what will happen to your funds?

There were no other mailings, and as I originally sent the details of where I wanted the funds to go on maturity, I expected this to happen ? My point is why did the PO not send details prior to maturity reconfirming my original instructions or asking where the money was to go, or even informing me the funds would transfer to a new savings account paying 0.10% ? they only needed to follow the original instructions, but for some reason best known to them, they didnt?

Sceptic001

If you got the same literature as me I'm afraid you simply misread it. They probably wrote to you more than once because you did not reply to their first letter. It was clearly stated that the Easy Saver Account was the default option (ie. what they do in the absence of any other instructions).

If you had previously given them instructions the fact that they kept writing to you asking for instructions should have alerted you to the fact that they had not acted on them.

zogg

Happychappy wrote: »

Hi

That is my point, the Post Office sent four different mailings all to do with the bond maturing and all trying to sell new bonds, each of the advertising materials listed the options only if you wanted to reinvest, if you didnt, the only line was No Problem, we will send you details of what will happen to your funds?

There were no other mailings, and as I originally sent the details of where I wanted the funds to go on maturity, I expected this to happen ? My point is why did the PO not send details prior to maturity reconfirming my original instructions or asking where the money was to go, or even informing me the funds would transfer to a new savings account paying 0.10% ? they only needed to follow the original instructions, but for some reason best known to them, they didnt?

You're worried about the present Jock ?
Learn to read (and understand) the queens english.
At least we don't have you running the country.:rotfl:

Happychappy

zogg wrote: »

You're worried about the present Jock ?
Learn to read (and understand) the queens english.
At least we don't have you running the country.:rotfl:

Zogg clearly there is some highland village which is missing you :rolleyes: